Prosus and Just Eat: A Strategic Culinary Union
February 24, 2025, 10:35 pm
In the world of food delivery, change is the only constant. Prosus, a Dutch technology investor, has made headlines with its bold move to acquire Just Eat Takeaway.com for €4.1 billion (approximately $4.3 billion). This all-cash deal is not just a financial transaction; it’s a strategic play that could reshape the landscape of food delivery in Europe.
Just Eat, once a shining star in the food delivery universe, has faced turbulent times. The pandemic initially propelled its growth, but as consumer habits shifted, the company found itself in choppy waters. Its stock price plummeted nearly 90% from its peak, making it a prime target for acquisition. Prosus’s offer of €20.30 per share represents a 49% premium over the three-month average, a lifeline for Just Eat shareholders.
This acquisition is more than just numbers. It’s about vision. Prosus aims to leverage its extensive experience in food delivery across 80 countries to invigorate Just Eat. The goal? To create the world’s fourth-largest food delivery group. With a portfolio that includes iFood in Latin America and stakes in Delivery Hero and Swiggy, Prosus is no stranger to the food delivery game.
The backing from Just Eat’s management and board adds weight to this deal. It signals confidence in Prosus’s ability to drive growth and innovation. The merger is expected to enhance efficiencies and customer experiences, powered by cutting-edge technology and artificial intelligence.
Just Eat operates in 17 countries and generated €26.3 billion in gross transaction value in 2024. However, the sale of its Grubhub arm for a mere $650 million—after acquiring it for $7.3 billion—highlights the challenges it has faced. This acquisition is a chance for Just Eat to regain its footing and for Prosus to expand its footprint in Europe.
Market reactions have been swift. Just Eat’s shares soared by over 54% following the announcement, a clear indication of investor optimism. In contrast, Prosus shares dipped by 8.7%, reflecting the market's cautious stance on the deal. The dynamics of the food delivery sector are shifting, and investors are keenly watching how this acquisition unfolds.
Prosus’s CEO, Fabricio Bloisi, envisions a future where the combined strengths of both companies create a European tech champion. The focus will be on enhancing customer and driver experiences, fostering restaurant partnerships, and optimizing logistics. The integration of advanced technology will be crucial in achieving these goals.
The food delivery market is a battlefield. Competitors are fierce, and consumer preferences are fickle. Prosus’s strategy to invest heavily in Just Eat could provide the necessary ammunition to compete against rivals like Delivery Hero and Uber Eats. The key will be to innovate continuously and adapt to changing consumer demands.
The deal also comes at a time when Just Eat is restructuring its operations. The decision to delist from the London Stock Exchange was a strategic move to streamline operations and reduce costs. This acquisition aligns with Just Eat’s goal of focusing on core markets and leveraging Prosus’s resources to drive growth.
The future of food delivery is not just about convenience; it’s about creating value. Prosus believes that by combining its technical prowess with Just Eat’s established brand, they can unlock significant value for customers, drivers, and shareholders alike. This partnership could set a new standard in the industry.
However, challenges lie ahead. Regulatory approvals are necessary before the deal can be finalized. The scrutiny from regulators will be intense, given the size and impact of this acquisition on the European market. Both companies must navigate these waters carefully to ensure a smooth transition.
In conclusion, the Prosus-Just Eat acquisition is a pivotal moment in the food delivery sector. It’s a gamble that could pay off handsomely if executed well. As the industry evolves, this partnership could redefine how food delivery operates in Europe. The stakes are high, and the world will be watching closely.
This deal is not just about food; it’s about the future of delivery. With Prosus at the helm, Just Eat may just find its way back to the top of the menu. The culinary landscape is shifting, and this acquisition could be the recipe for success.
Just Eat, once a shining star in the food delivery universe, has faced turbulent times. The pandemic initially propelled its growth, but as consumer habits shifted, the company found itself in choppy waters. Its stock price plummeted nearly 90% from its peak, making it a prime target for acquisition. Prosus’s offer of €20.30 per share represents a 49% premium over the three-month average, a lifeline for Just Eat shareholders.
This acquisition is more than just numbers. It’s about vision. Prosus aims to leverage its extensive experience in food delivery across 80 countries to invigorate Just Eat. The goal? To create the world’s fourth-largest food delivery group. With a portfolio that includes iFood in Latin America and stakes in Delivery Hero and Swiggy, Prosus is no stranger to the food delivery game.
The backing from Just Eat’s management and board adds weight to this deal. It signals confidence in Prosus’s ability to drive growth and innovation. The merger is expected to enhance efficiencies and customer experiences, powered by cutting-edge technology and artificial intelligence.
Just Eat operates in 17 countries and generated €26.3 billion in gross transaction value in 2024. However, the sale of its Grubhub arm for a mere $650 million—after acquiring it for $7.3 billion—highlights the challenges it has faced. This acquisition is a chance for Just Eat to regain its footing and for Prosus to expand its footprint in Europe.
Market reactions have been swift. Just Eat’s shares soared by over 54% following the announcement, a clear indication of investor optimism. In contrast, Prosus shares dipped by 8.7%, reflecting the market's cautious stance on the deal. The dynamics of the food delivery sector are shifting, and investors are keenly watching how this acquisition unfolds.
Prosus’s CEO, Fabricio Bloisi, envisions a future where the combined strengths of both companies create a European tech champion. The focus will be on enhancing customer and driver experiences, fostering restaurant partnerships, and optimizing logistics. The integration of advanced technology will be crucial in achieving these goals.
The food delivery market is a battlefield. Competitors are fierce, and consumer preferences are fickle. Prosus’s strategy to invest heavily in Just Eat could provide the necessary ammunition to compete against rivals like Delivery Hero and Uber Eats. The key will be to innovate continuously and adapt to changing consumer demands.
The deal also comes at a time when Just Eat is restructuring its operations. The decision to delist from the London Stock Exchange was a strategic move to streamline operations and reduce costs. This acquisition aligns with Just Eat’s goal of focusing on core markets and leveraging Prosus’s resources to drive growth.
The future of food delivery is not just about convenience; it’s about creating value. Prosus believes that by combining its technical prowess with Just Eat’s established brand, they can unlock significant value for customers, drivers, and shareholders alike. This partnership could set a new standard in the industry.
However, challenges lie ahead. Regulatory approvals are necessary before the deal can be finalized. The scrutiny from regulators will be intense, given the size and impact of this acquisition on the European market. Both companies must navigate these waters carefully to ensure a smooth transition.
In conclusion, the Prosus-Just Eat acquisition is a pivotal moment in the food delivery sector. It’s a gamble that could pay off handsomely if executed well. As the industry evolves, this partnership could redefine how food delivery operates in Europe. The stakes are high, and the world will be watching closely.
This deal is not just about food; it’s about the future of delivery. With Prosus at the helm, Just Eat may just find its way back to the top of the menu. The culinary landscape is shifting, and this acquisition could be the recipe for success.